Introduction

1
Introduction Overview Presented By Itumeleng
Masege
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Introduction Overview

• Introduction
• Aims and objectives
• Outcome

3
Overview

• ITACs Mandate
• Policy environment
• SACU

4
ITAC Structure

• Core Business
• Trade Remedies I II
• Tariff Investigations III
• Import Export Control
• Policy Research
• Legal, Secretariat
• Corporate Services (Finance,Communications, HR,
  IT)

5
ITAC Strategic Objectives
ITAC Strategic Objectives

• ITAC strategic objective establish a platform
  that optimally contributes to sustainable growth,
  employment and equity
• reduce production costs
• promote downstream value addition

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ITAC Strategic Objectives

• encourage specialisation and rationalisation
• enhance international competitiveness
• export orientation
• support sustainable industrialisation
• Equitable opportunity for SMME, BEE and WEE

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Trade Remedies Presented by Carina Grove
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The Function of Trade Remedies

• Anti-dumping
• Countervailing
• Safeguards

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Purpose of Trade Remedies

• Competitiveness
• Unfair trade

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Purpose of Trade Remedies

• Not uncommon
• Not prohibited
• Injurious dumping
• Level playing field
• Not on request

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Purpose of Trade Remedies

• Public hearings
• Public interest

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What is dumping?
Legislative framework

• ITA Act
• WTO Agreements
• Regulations

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What is dumping?
What is Dumping?

• Dumping occurs when a product is exported to
  another country, at a price which is lower than
  the price at which the same product is sold in
  the country of origin.

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What is dumping?
What is Countervailing?

• Countervailing is action against imported
  products which are subsidised by a foreign
  government which causes injury to the SACU
  industry

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What Is Dumping?
What is Safeguards?

• Safeguard action is taken to protect the SACU
  industry against a surge of imports which causes
  serious injury

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Allegation of Dumping or Subsidisation What to
Prove

• Dumping/Subsidy
• Material injury/threat
• Causality

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Safeguard Action What to prove

• Surge of imports
• Serious injury/threat
• Causality

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Material/Serious injury

• 14 various economic factors
• Not all positive

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Process and Time Frames For Imposition

• Complaint, Merit assessment, Prelim
  determination, Final determination and
  recommendation
• AD CDV 12 to 18 months for final measures
• Provisional measures within 6 months of
  initiation

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Statistics on cases

• 2004 2005 2006
• Initiated 13 13 4
• Prelim 5 11 7
• Final 16 17 18
• Duties imposed 9 3 6

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Industries involved

• Steel
• Glass
• Paper
• Textiles
• Chemicals plastics

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Import Export Presented by PHILIP SNYMAN
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Import and Export Control

• Function
• Purpose
• Legal framework
• Policy
• Distinction between New Goods, Used or Second
  Hand Goods and Waste and Scrap

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Purpose For Control New Goods

• Health and Environment
• International Agreements
• Strategic Reasons

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Purpose for Control New Goods

• Quality and Safety Reasons
• Safety and Security
• Social Reasons and Quality

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Purpose For Control Used or Second Hand Goods

• The General Rule
• Specifically Defined Circumstances
• Raw material for manufacturing

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Import and Export Waste and Scrap

• Purpose for control
• Basel Convention

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Import And Export

• Export Control
• Purpose of control
• Beneficiation
• International Agreements
• Raw Materials for Manufacturing

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Import And Export

• Assist Strategies of Crime Prevention
• Strategic Reasons

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Import And Export

• Enforcement of the Act
• Inspections
• Investigations
• Seizure of Goods

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Import and Export
Import And Export

• General
• Systems
• Information and Application Forms

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Import and Export

• STATISTICS 2005/2006 FINANCIAL YEAR
• Permit applications adjudicated 29 145
• Import Permits Issued 17 870
• Export Permits Issued 3 985

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Import And Export

• MoU with PRC
• Regulations

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Tariff Investigation Presented by Brenda Mabaso
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Function

• Conduct customs tariff investigations on
  behalf of the Commission
• Responsible for
• 1. Customs Tariff Amendments Investigations
• 2. Administration of customs rebates

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Tariff Amendments

• What is a tariff amendment?
• Amendment of customs duty applicable to
  imported product
• Types of amendments
• Increase in customs duties
• Reduction in customs duties
• Creation of industrial rebates

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Rebates and Drawbacks

• What are they?
• A waiver provided for the domestic
• industries not to pay customs duties
• Allows sourcing of inputs at competitive prices
• Promotes exports

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Assessment Criteria

• Whether the product or a substitute is
  manufactured in the SACU?
• The competitiveness position of the product
  concerned
• The effective rate of protection
• Calculation of the of the duty rate in relation
  to the factory selling price of the product
• Production and market factors
• Tariff simplification
• Investment and employment

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Role of the Instruments

• Facilitate normal trade
• Trade liberalisation
• Compliance to Trade Agreement obligations
• Encourage tariff reduction as opposed to rebate
  creation

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Legal Framework

• ITA Act
• Customs and Excise Act, 1964
• Customs Tariff Policy

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Structure of the Unit
Tariff 1 Chemicals Textiles Agro Processing Duty Credit Certificate (DCCS/TCIDP) Tariff 2 Metals Machinery Motor Industry Development Programme (MIDP)
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Applications Process

• Receive
• Assessments
• Preliminary Investigation
• Table findings of prelim before adjudicating
  body Commission
• Publish for further investigation

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Applications Process

• Table for final determination
• Recommendation to Minister of Trade and Industry
• Trade and Industry Minister to Finance Minister
  for implementation
• Gazette
• TIME FRAME OVERALL

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Statistics
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Statistics
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How To Apply

• Information is available on ITACs website-
  www.itac.org.za
• Come for consultation ITAC offices
• Post

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Southern African Customs Union (SACU) BRENDA
MABASO
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Operationalisation of SACU Institutions

• Article 7 of the SACU Agreement, states the
  democratisation of SACU through the establishment
  of institutions

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Organogram
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The SACU Process

Commission of Senior Officials
advice
recommendations
recommendations
Council of Ministers
National Institutions
SACU Tariff Board
deadlocks
Tribunal
SACU Secretariat (administrative support)
 
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SACU Roadmap
Establishment of NB Operation of NBs Sept 2007 Jan 2008
Nomination of Experts to serve on TB Commencement of Training of TB Members Feb 2007 Feb 2007
Establishment of TB Operation of TB Sept 2007 Jan 2008
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Challenges

• Capacity of Member States
• Development of Common Policies

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Thank You Please Visit Our Website www.itac.org.za